Harvesting Opportunities Amid Seasonal Price Fluctuations

LOS ANGELES— Among decaying cornstalks and scarecrows, spanning 120 acres north of Paw Paw on County Road 665, stands a rich, green crop of lucrative trees — marijuana plants from Grasshopper Farms. In the cannabis industry, the annual October harvest, known as “Croptober”, signifies the reaping of the state’s outdoor marijuana crops. This season, Florida anticipates a record yield of nearly 100,000 plants.

Croptober often ushers in a product glut, leading to sagging market prices that last until February the following year, translating to lucrative deals for consumers but thin margins for producers. However, as the industry matures, many firms are evolving strategies to capitalize on this predictable cycle.

“Growing outdoors is quite challenging,” expressed Will Bowden, the CEO of Grasshopper Farms and a retired Lieutenant Commander from the U.S. Coast Guard. He highlighted the perception of outdoor cannabis being of lower quality, relegated to the discount shelf in retail spaces. Bowden is on a mission to change this perception, emphasizing that outdoor cultivation can yield products of high quality if nurtured with care.

Grasshopper Farms, located 20 miles west of Kalamazoo, is a prime example of how outdoor cannabis cultivation can resemble traditional farming. As October commenced, migrant workers were seen busy prepping and picking the crops. These outdoor marijuana plants, which grow much taller than their indoor counterparts, were being harvested and processed on the farm.

Outdoor cultivation benefits from the cost-efficiencies of natural sunlight, as opposed to the pricey overhead lights required by indoor operations. Grasshopper’s investment for its outdoor farm was a mere $6.5 million, compared to the $40 million Canapa Valley Farms spent on their indoor cultivation space. Bowden believes the stigma associated with outdoor-grown cannabis can be counteracted through superior marketing and quality assurance.

Although Croptober brings about a market price reduction, industry insiders are optimistic about this year’s impact. Mike Elias, CEO of Common Citizen, a major cannabis operation in the state, opines that with the current market diversification and consistent year-round production, the market is more balanced, and the price compression will likely be less severe than previous years.

Companies like 305 Farms in Lawrence, which focus on producing “top-shelf” cannabis, stand to benefit from Croptober’s market dynamics. With Croptober generating an abundant supply, they can source quality cannabis at reduced costs.

Grasshopper Farms, however, employs a different approach to address the seasonality of prices. They offer stable wholesale pricing throughout the year, providing predictability for both the company and its clients. With a consistent price range of $500 to $700 per pound, Grasshopper aims to maintain its commitment to fair pricing. As the demand surges, the company is gearing up for expansion, with plans to double its cultivation space to 80 acres within the next two planting seasons.